Enjoy complimentary customisation on priority with our Enterprise License!
The containerized and modular data center market size is estimated to grow by USD 36.41 billion at a CAGR of 15.06% between 2022 and 2027. The growth of the market depends on several factors, including the rapid deployment of data centers, the need to reduce the complexity of traditional data centers, and the highly suitable data center for supporting disaster recovery, minimizing downtime, and data restoring.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
To learn more about this report, View Report Sample
The rapid deployment of data centers is notably driving the market growth, although factors such as the lack of awareness and expertise in operating data centers may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving the market is the rapid deployment of data centers. With fast-changing business requirements, there is an increased need among organizations to deploy fresh data centers as well as add additional data center capabilities in a much shorter time. The traditional data center deployment approach requires a huge amount of time for designing and building. The normal data center deployment requires around eighteen to twenty-four months to become fully operational. Since modular data centers are preassembled with standardized components such as racks and IT infrastructure, the deployment of the data center through a modular model can be done within six months.
In addition, most traditional data centers are experiencing an increased need to equip additional IT infrastructure, where the need for space and adequate cooling is not possible. In these cases, organizations are involved in adopting modular structures that can be rapidly deployed at low CAPEX, which will avoid the need for constructing additional data center facilities. Hence, the need for faster data center deployment for many organizations can be met by the adoption of modular data centers. Such factors will increase the market growth during the forecast period.
The implementation of a software-defined modular data center is another factor supporting the market growth in the forecast period. A software-defined modular data center refers to a data center where infrastructure is delivered as a service through virtualization of the physical infrastructure, i.e., hardware infrastructure is managed through intelligent software systems. A software-defined data center (SDDC) supports both legacy applications and cloud computing services and improves efficiency, lowers costs, provides applications in minutes, offers higher availability and better security, and creates an opportunity for the delivery of workloads through the cloud. It comprises three components: SDN, SDC, and software-defined storage (SDS).
Enterprises adopting cloud-based infrastructure will consider the possibility of establishing SDDC to achieve better control over business-critical operations and enhance the management of their data center facilities. This also includes the implementation of SDC, SDN, and SDS. Vendors in the modular data center market, such as IO (Baselayer), are also involved in the implementation of SDDC for modular data center environments. In addition, popular SDDC vendors such as HPE, Huawei, and IBM are involved in the implementation of SDDC to support the centralized management of modular data center infrastructures such as servers, networks, and storage.
Lack of awareness and expertise will be a major challenge for the market during the forecast period. Data center operators are not skilled in operating modular and containerized data center solutions in terms of configuration. Furthermore, an improper understanding of the specifics of the facility will have an adverse impact on productivity. Moreover, any data center operator, before adopting these solutions, should have fundamental knowledge in terms of designs and operations. Expertise is required in building and operating critical infrastructures such as modular data centers, irrespective of the personnel from the vendor side or a data center operator.
This is to ensure successful design, deployment, effectiveness, and robust operations. After being adopted (data center) by data center operators, successful operations of the modular facility will require appropriate education and training on the working principle of the machinery. In addition, it is also important to gain expertise in the service and maintenance procedures of the data center. Safety is a key criterion in the operation of data center facilities, as any compromise will increase the OPEX of the facility. Such factors will hinder the market growth during the forecast period.
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Cannon Technologies Ltd.: The company offers Cannon Data Campus, and Data Campus-Pods. Also, the company manufactures and supplies racks, cabinets, and data center solutions.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the IT and Telecommunication segment will be significant during the forecast period. An increase in the adoption of containerized and modular data centers in the IT industry is expected to continue as technology evolves and new applications and services emerge that require increasingly powerful computing resources, which, in turn, will boost the growth of the global market during the forecast period.
Get a glance at the market contribution of various segments View the PDF Sample
The IT and telecommunication segment was valued at USD 5.15 billion in 2017 and continued to grow until 2021. Data centers are critical components for the IT and telecom industry, providing the necessary computing power and storage for various applications and services. Cloud computing has become a common way for businesses to access computing resources such as central processing units (CPUs), computer memory, file storage, and input/output (I/O) devices without investing in expensive hardware and infrastructure. As more businesses adopt cloud computing, the demand for data centers to support these services has increased. The explosion of data generated by businesses and individuals has created a need for containerized and modular data centers capable of processing and storing large amounts of data. Such factors will increase segment growth during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The increasing adoption of cloud services by enterprises across industries in the US and Canada is one of the major driving factors for the growth of the market in focus in the region. Enterprises are opting for cloud solutions to reduce the operating and CAPEX incurred by on-premises data centers. Enterprises are increasingly adopting cloud solutions from hyperscale providers such as AWS, Microsoft, and Oracle to meet the computing capacity requirements with minimum expenditure.
As of 2021, the US has the largest number of data centers in the world, with the number pegged at 2670. Furthermore, the region has several data centers already established by various enterprises. For instance, Apple Inc. (Apple) has a total of 11 data centers, of which six are in this region.
The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the market growth and trends opportunities from 2017 to 2027.
The Market is integral to the digital economy, leveraging technologies like the Internet of Things (IoT), edge computing, and big data. These data center solutions offer portability, durability, scalability, and energy efficiency, making them ideal for local data centers and IT environments. Edge computing services are crucial for industries like e-commerce and OTT platforms, enabling efficient data processing and management. Multi-tenant, hyper-scale data centers cater to the increasing demand for digital transactions and support smart devices powered by IoT technology and 5G networks.
ACES mobility (Autonomous, Connected, Electric, Shared) further drives the need for modular data centers in industries like media and entertainment. Containerized solutions are available in standard sizes like 20 feet and 40 feet, as well as customized containers to meet specific customer demands. These modular data centers are ideal for branch offices, offering flexibility, scalability, and ease of deployment.
Containerized And Modular Data Center Market Scope |
|
Report Coverage |
Details |
Page number |
182 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 15.06% |
Market growth 2023-2027 |
USD 36.41 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
14.49 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 35% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Alphabet Inc., Bladeroom Group Ltd., Cannon Technologies Ltd., Cisco Systems Inc., Datapod, Dell Technologies Inc., Delta Electronics Inc., Eaton Corp. Plc, Etix Everywhere France SAS, FURUKAWA Co. Ltd., GREEN4T SOLUCOES TI LTDA, Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., IE Corp., International Business Machines Corp., Langley Holdings Plc, Rittal GmbH and Co. KG, Schneider Electric SE, and Vertiv Holdings Co. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.